Daimler Sustainability Newsletter, Issue December 2008

December 2008 Daimler Sustainability Newsletter

+++ Virtual climate conference +++ 230 natural gas trucks for California +++ car2go +++ myCOMAND infotainment system +++ e-mobility +++ +++ Electric drive research cooperation +++ Cooperation with Kamaz +++ Day of Caring +++ Corporate Health Award +++

Sustainability management Contents

Environment: » 2 The first Daimler Daimler supports virtual climate conference Innovation: » 4 Sustainability Dialogue Electric drive research cooperation Markets: » 5 Daimler maintains dialogue with its stakeholders throughout the world. With the Daimler acquires 10 per cent of Kamaz “Daimler Sustainability Dialogue” in early November, the Group has further intensified and now also institutionalized this process. Health management: » 6 Corporate Health Award bestowed on Daimler

commitment to sustainability throughout the Group with the addition of a signifi- cant further component,” said Grube in his opening address. With this event, the company is setting out to gain practical experience to further improve its sustain- STUTTGART – At the opening function Grube, member of the Board of Manage- ability performance. Thereto it is planned in Stuttgart, some 60 representatives ment with respon sibility for Corporate for the long term as a regular exchange of from the fields of industry, politics, and Development and for control of the “Cor- views with the Group’s stakeholders. It will society engaged in discussion with some porate Sustainability Board.” be held annually in future. of Daimler’s senior executives, including “With the Sustainability Dialogue, The participants discussed their sus- Dr. Dieter Zetsche, Chair man of the Board Daimler has created a new platform for a tainability topics in three workshops. of Management of Daimler AG and Head more intensive and open exchange of Over the coming months, specific plans of of Mercedes-Benz Cars, and Dr. Rüdiger opinion. Daimler is thus extending its Continued on page 2

Editorial

cance to this topic in the second half of In 2008, too, we have continued to 2008, at a time when the market environ- pursue our objective of economic, eco- ment has already been marked by a mas- logical, and social sustainability with sive decline in sales. Whatever 2009 has a wide range of measures, projects, in store for us, one thing is for certain: and innovative products – currently for Nothing will change the high priority that example through our conference on Daimler attaches to sustainability. “Diversity as an Economic Factor,” our It is no coincidence that we secured innovative “car2go” mobility concept, our sustainability management at Board of and the S 400 BlueHYBRID, the first Management level in 2008 with the found- serial hybrid model from a German ing of a “Sustainability Board,” thereby manufacturer. Dear readers, creating the basis for networking our You can find out more about all these For Daimler, sustainable economic man- diverse activities throughout the Group. topics in this issue of our “Daimler agement and business success are not At the same time, with the “Sustainability Sustainability Newsletter.” I wish you mutually exclusive. On the contrary: Dialogue” we have established a new dis- enlightening reading. Whoever intends to register profitable cussion forum to be staged annually with growth in the long term must reconcile national and international stakeholders. Dr. Dieter Zetsche ecological and societal objectives – and By this means, we intend to intensify open Chairman of the Board of not only during times of prosperity. We exchange on our sustainability strategy Management of Daimler AG and have also accorded appropriate signifi- with all interest groups in society. Head of Mercedes-Benz Cars

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The first Daimler Sustainability Environment Dialogue Continued from page 1 action are to be drawn up in cooperation Daimler Trucks North America with the participating groups. The “Daimler Sustainability Dialogue” delivers 230 natural gas trucks was initiated by the “Corporate Sustain- ability Board,” which Daimler established On December 8 this year, Daimler Trucks North America (DTNA) delivered more at Board of Management level early this than 230 new natural gas-powered tractor units as part of the “Clean Truck Program” year. The “Sustainability Board” groups to- initiated by Californian ports. gether the Group’s management functions in the three dimensions of sustainability: PORTLAND – At Long Beach Harbor, two million inhabitants of these two port economy, the environment, and society. DTNA handed over 132 vehicles to the regions are subject to considerable health The speeches delivered at the opening California Cartage transport company. A risks. According to estimates by CARB, function can be downloaded at further 100 tractor units are in operation this gives rise to medical costs amount- www.daimler.com/sustainability. at the ports of Los Angeles and Long ing to between US$100 and 590 million Beach. One of the USA’s first and largest an nually. The two port areas have there- truck fleets with natural gas drive thus fore resolved to become the ‘greenest’ in +++ News +++ News +++ News +++ originates from Daimler Trucks North the USA. In the “Clean Truck Program” America. they are working together with CARB, +++ smart: the USA’s most econom- The launch of this almost zero-emission the Environmental Protection Agency ical car. In the USA, too, the smart truck fleet is an important step with in the (EPA), the Southern California Air Quality fortwo is the No. 1 car when it comes to publicly subsidized “Clean Truck Program” Management District (SCAQMD), and environmental compatibility and econ- initiated by the ports of Los Angeles and the private transport company California omy. The Environmental Protection Long Beach. With this program, old com- Cartage. This provider is building up a Agency (EPA) of the U.S. government mercial vehicles in the port areas with high low-emission vehicle fleet; in return, has set the fortwo at the top of its list pollutant emission levels are to be replaced more environment-friendly trucks are to of the most economical non-hybrid ve- by new, low-emission trucks. Daimler Truck be made more affordable. This will bene- hicles. It already meets the U.S. stan- Financial (DTF) was awarded the contract fit the more than 1,200 independent dards for fleet consumption to be intro- to be the preferred lender. DTF will finance haulers throughout the USA who drive for duced in 2020. +++ or lease trucks to owner operators and California Cartage. independent fleet companies based on The Sterling Set-Back 113 trucks were +++ Electromobility development customer creditworthiness and their ability modified during the production process plan. Daimler is playing a proactive role to meet port requirements. by Daimler for operation on natural gas. in shaping the German government’s Studies by the California Air Resources They are fitted out with Cummins West- National Electromobility Development Board (CARB) have shown that more than port ISL G engines. Plan. In late November, the Group contributed its experience in discussions at Environment the federal ministries’ strategic conference. “We welcome the fact that the federal government is now including the topic of electromobility in its energy Daimler supports the first virtual and climate program,” said Daimler AG’s Chief Environmental Officer Pro- climate conference fessor Herbert Kohler. +++ “Climate 2008,” the world’s first online climate conference, was launched in early November this year. Contact/Masthead STUTTGART/HAMBURG – “There are of the online research conference was to Published by: Daimler Communications many conferences on climate change – provide information on new scientific find- Global Corporate Media & Marketing, but Climate 2008 is different!” It was un- ings relating to climate change, including External Publications der this motto that the Hamburg Univer- ecological, societal, economic, and politi- sity of Applied Sciences called the first cal aspects. It also presented worldwide Responsible on behalf of the publishers: Mirjam Bendak virtual conference into existence. Daimler projects and initiatives from the domain of Project manager: Matthias Steybe supported the event with its own discus- science and from government and non- Assistance: Mareike Jahnle sion forums and a live chat on the topic of government organizations. E-mail: [email protected] sustainable mobility. The patronage of this project, which “As an innovative enterprise, we design has been adopted by UNESCO into the The Daimler Sustainability Newsletter is published four times per year. our products and manufacturing pro - UN Decade of “Education for Sustainable cesses with as little impact on the envi- Development,” was assumed by federal Subscriptions to the Newsletter can be canceled at ronment as possible. Moreover, we wish education and research minister Annette the e-mail address [email protected] to further promote objective discussion on Schavan, the director of the UN environ- Further information is available at the causes and effects of climate change,” ment program Achim Steiner, and Prince www.daimler.com/sustainability said Professor Herbert Kohler, Chief Envi- Albert II of Monaco. ronmental Officer at Daimler AG. The aim

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Innovation

How does car2go differ from the smart for 19 cents per minute familiar car pooling system? 1. There is no security deposit involved, and there The first pilot phase of the novel smart rental car project “car2go” was launched are no monthly rates, handling or membership in Ulm, Germany, at the end of October this year. fees. 2. Use of an automobile is charged purely on the basis of time, not distance covered. The cal - tered, all customers can use a vehicle for culation per minute is particularly attractive for as long as they like, either at a moment’s short inner-city journeys (e.g. ten minutes for 1.90 euros). notice or with prior registration. And the 3. The car2go can be returned at any point within new car rental concept ensures that a the area covered by the project. smart is always available within just a few minutes’ walking distance in the inner city. The vehicle is opened by means of a sively for Daimler employees and their seal on the driver’s license. The customer families. “Our aim is to gain practical ex- can then drive away immediately, and at perience in the operation of car2go. For Booking a smart by cell phone: the end of the journey the rented smart is example, we are analyzing the technical “car2go” in Ulm. simply left on a parking space within the implementation, the service concept, and city zone. The accounting for the Ulm proj- the usage patterns among the test parti - ULM/STUTTGART – car2go provides an ect is calculated in just as simple and ver- cipants,” said Robert Henrich, project answer to increasing traffic densities in satile a manner as for the overall operation manager in business innovation. The sec- conurbations and is redefining innercity of the car2go project: on a minute-for- ond pilot phase will be launched early next traffic: For the first time, in Ulm smart minute basis, for only 19 cents per minute. year. With a greatly extended automobile fortwo vehicles can be rented anywhere, The first project phase in Ulm involved fleet, car2go will then become available to anytime, at attractive prices. Once regis- fifty smart fortwo vehicles, at first exclu- all of the city’s inhabitants and visitors.

Innovation Innovation Intelligent transport systems of the future

At the 15th World Congress on Intelligent Transport Systems (ITS) held in mid- November in New York, Mercedes-Benz demonstrated its driver assistance systems of the future and the newly developed infotainment system “myCOMAND.”

STUTTGART/NEW YORK – In 2007, With the “myCOMAND” infotainment around 2.5 million people were injured and system, Daimler provided insights into on- 40,000 killed in road traffic in the USA. board information and entertainment sys- To appreciably reduce these numbers, the tems that will be entirely Internet-based in research and development experts from future. The newly developed “myCOMAND” Daimler are for example supporting the system automatically updates its informa- “Vehicle Infrastructure Integration” initia- tion from the Internet whenever the vehi- HighTechReport now available tive, in which they are testing concepts for cle’s engine is started. Whether it be road Daimler’s second HighTechReport vehicle-to-vehicle communication and for maps and traffic reports for the navigation “HTR” for this year was released at the communication between vehicles and system, or weather information, accom- end of November. The key topics of the roadside transmitting or receiving devices. modation, and leisure-time activities at the latest issue of this innovation maga- In New York, Daimler demonstrated an ex- destination: The driver is kept abreast of zine include “Safety Coach – The New perimental system for braking assistance the latest developments at all times. The Mercedes-Benz Travego with Active at traffic lights. The newly developed assis- functions of “myCOMAND” also include Brake Assist and Front Collision Guard,” tance systems also include technologies telephone communication via the Internet “Drive Systems – Daimler’s drive sys- for registering a vehicle’s surroundings and and reception of radio stations from tems strategy and its implications for for measuring the burden on a driver. all over the world. The user can call up the future,” and “Innovation manage- “Mercedes-Benz vehicles have always these functions intuitively, since they are ment – Why thousands of employees been regarded as the safest and most com- grouped together on an attractively de - are networking in the Innovation Jam.” fortable in the world. To ensure that this signed interface. If you wish to order a copy of HTR in remains so in future, we are displaying our Attended by around 10,000 interna- print, send an e-mail to exhibits at the ITS World Congress,” said tional visitors, the ITS World Congress is [email protected]. Prof. Dr. Bharat Balasubramanian, Vice the largest trade fair for the onboard ap - President, Group Research and Advanced plication of modern information and com- www.daimler.com/innovation Engineering, E/E, IT and Processes. munication technologies.

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Innovation Environment

Innovation Award for BlueTEC

“e-mobility” to reach Italy in 2010 Bild am Sonntag has bestowed its “Grünes Lenkrad” award on Daimler With more than 100 electric vehicles, Daimler in cooperation with the Italian for its BlueTEC technology. electricity supplier Enel is launching a further pilot project for electric driving in Rome, Milan, and Pisa. STUTTGART – BlueTEC, a technology developed by Daimler for diesel vehicles, is the best environmental innovation for automobiles and sustainably reduces the burden on the environment. This was the verdict from readers of the Sunday newspaper Bild am Sonntag and a panel of experts that included federal transport minister Sigmar Gabriel, Green Party leader Renate Künast, and VDA chairman Matthias Wissmann. BlueTEC thus has the greatest potential of all environment-friendly auto motive innovations currently available, the experts con- STUTTGART/ROME – From 2010 on- Italy, where most vehicles are parked on cluded. This technology keeps NO wards, more than 100 electric vehicles public streets. x emissions well below the limits pre- of the smart and Mercedes-Benz brands Following “e-mobility Berlin,” Daimler scribed by the EU5 standards. will be on the move in Rome, Milan, and is thus initiating the next large-scale proj- Pisa in the “e-mobility Italy” project, ect for urban electromobility. Further for which Italy’s largest electricity sup- projects in Europe and the USA are cur - plier Enel is establishing more than 400 rently under preparation. Daimler has Daimler initiated “e-mobility Berlin,” specially developed charging stations also entered into negotiations with nu- one of the world’s largest projects for in these three major cities. The objec- merous companies for the promotion of a the trial operation of battery-powered tives of this pilot project are to further hydrogen infrastructure: Along with bat- vehicles, together with RWE AG. From develop the onboard technology and an tery-powered vehicles, the Group sees the end of 2009 onwards, a fleet of intel ligent infrastructure, and to estab- fuel cell vehicles as having the greatest more than 100 electric vehicles of the lish open standards. The topic of infra- potential for electric and emission-free smart and Mercedes-Benz brands will structure is of special significance in driving, even over long distances. be in operation in Berlin.

Innovation

of the State of Baden-Württemberg,” said Daimler and KIT in electric drive Dr. Thomas Weber, member of the Board of Management of Daimler AG with research cooperation responsibility for Group Research and Mercedes-Benz Cars Development. Daimler and the Karlsruhe Institute of Technology (KIT) – a facility jointly established By uniting the fields of competence of by the University and the Karlsruhe Research Center – have initiated a research co - power electronics, control systems, electri- operation for electric drive systems. cal energy storage units, and electrical ma- chinery under the one roof, valuable syner- ket maturity for these automobiles. By reg- gies are being created with this project. ularly commissioning research projects, “The ‘e-drive Project House’ is a prime Daimler will ensure full-capacity operation example of cooperation between science of the “e-drive Project House” on a long- and industry, with the aim of rapidly trans- term basis and also involve its own em- forming fundamental research into future ployees. From 2009, Daimler’s commit- technologies,” said Günther Oettinger, ment to KIT will also extend to a “Hybrid Minister-President of Baden-Württemberg, Electric Vehicle” Foundation Professorship on the occasion of the signing of the con- KARLSRUHE – The “e-drive Project with the aim of establishing an internation- tracts. Baden-Württemberg’s State Min- House” at KIT is now carrying out funda- ally competitive research program. istry of Science, Re search, and the Arts mental research into electric and hybrid “The electrification of the automobile is subsidizing this cooperation with half a drive vehicles. With this pooling of expert- is playing a crucial role in the field of alter - million euros annually. ise from the spheres of industry and the native drive systems. Together with KIT’s economy, Daimler and the Institute are excellent scientists, Daimler is lending www.daimler.com/innovation setting out to considerably expedite mar- emphasis to the high innovative power www.kit.edu

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Markets Daimler Trucks acquires 10 per cent of Russian truck manufacturer Kamaz

Sustainable Growth: Daimler AG, Kamaz, Russia’s major heavy-duty trucks manufacturer, Russian Technologies State Corporation and Troika Dialog, the leading investment company in Russia, signed an agreement in Moscow last week governing the exclusive strategic partnership.

MOSCOW – Under the terms of the agree- part of the company’s growth strategy in ond-generation Mercedes-Benz Actros. ment, Daimler will acquire a ten percent the BRIC countries. The step is another Kamaz has production facilities, sales stake in the share capital of Kamaz from example of the consistent implementation structures, and a good retail network in Troika Dialog for 250 million US Dollar to be of the Global Excellence strategy, which Russia. As a result Kamaz will be an excel- paid in December 2008. Another one-time Daimler Trucks has been successfully pur- lent partner for the sale and service of payment of up to 50 million US Dollar will suing for the past four years. Mitsubishi Fuso trucks to Russian cus- be due in 2012 subject to successful busi- Kamaz and Daimler are aimed at mutu- tomers and will strongly support the mar- ness performance of Kamaz. In exchange, ally beneficial cooperation in the sphere ket entry of Mitsubishi Fuso. Also conceiv- Daimler AG will receive a seat on the Kamaz of technology transfers and a series of able would be joint projects involving Board of Directors and rights of Daimler joint projects. Daimler Trucks being exclu- Mercedes-Benz buses. In view of the ex- being a minority shareholder in Kamaz. sive strategic partner will contribute its pected increases in Russian import duties The cooperation with Kamaz will enable advanced technologies for Kamaz. The for vehicles, Daimler Trucks’ holding in Daimler’s truck division – Daimler Trucks – technology transfers encompass various Kamaz will give Daimler a further strategic to enter the Russian volume market and is components, including the cab of the sec- advantage.

Interview +++ News +++ News +++ News +++ Customer satisfaction in focus +++ Accountability Rating 2008. Daimler is in 21st place among the Dr. Frank Reintjes, responsible for Global Service & Parts (GSP) Mercedes-Benz, world’s 100 largest companies in this Maybach and smart at Daimler AG. year’s Accountability Rating. This was reported in Fortune magazine by the Competition in service and parts is English institute AccountAbility in mid- becoming increasingly fierce. Where November. The rating compares the do you see the greatest challenges? 100 companies with the largest rev- First of all, we are operating in the face enues with a view to their commitment of intense competition from other parts to responsible business practice and providers. In addition, we must maintain their influence in the areas of the econ- our position in the parts business against omy, society, and the environment in the independent parts wholesalers. To Dr. Frank Reintjes which they are active. Within the auto- meet this competition, we are reinforcing motive industry, Daimler is in second our sales activities and marketing our so we can better orient our products and place, behind Toyota (15th) and ahead products professionally at independent processes to the markets and customers of VW (26th) and BMW (28th). +++ workshops and among fleet customers. and can promote them in a more strategic We are also giving greater attention to at- manner. For example, we have already tracting owners of older vehicles to our grouped together the sales and marketing +++ Cooperation contract signed. workshops. In accident repair, we are set- functions throughout the organization and Mercedes-Benz and the Hungarian gov- ting out to counter the increasing influence reinforced them with additional personnel. ernment signed a cooperation contract of insurance companies and damage man- What are your intentions here? for a new factory in Kecskemét in late agement agencies. One of our prime aims is to achieve October. The new plant, located 80 How is the ongoing development greater differentiation within our product kilometers southeast of Budapest, will program “GSP reloaded.” helping you range – with regard to the markets, cus- extend production capacities in the to meet these challenges? tomer requirements, pricing, and service compact car segment. From 2012, over “GSP reloaded.” is helping us make our formats. This is an ambitious task: In each 100,000 units of the A- and B-Class organization fit for the future. We are ex- state, region, and in city we are confronted successor models will leave the produc- amining our entrepreneurial model, analyz- with different protagonists, business mod- tion line annually. Mercedes-Benz is in- ing our structures and processes, and els, and sales channels. The ongoing de- vesting approximately 800 million euros working on the strategy, the control model, velopment program will enhance our long- in this site, where some 2,500 new jobs and a customer-oriented culture geared for term competitiveness. We have the aims are to be created. +++ success. We are increasing our knowledge of profitable growth and high customer of customers, markets, and competitors, satisfaction in our sights at all times.

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Commitment to society Management Daimler employees care Porth new HR At the “Day of Caring” staged by Daimler Financial Services (DFS), employees showed Board member commitment to their fellow human beings in Mexico, Indonesia, Romania, and Germany. STUTTGART – time in mid-November. Together with At its meeting on Hungarian colleagues, fifty employees December 11, the helped get 35 apartments in a residen- Supervisory Board tial area near Burakest ready for moving of Daimler AG ap- into. In this project, they worked to- pointed Wilfried gether with the aid organization “Habitat Porth (49) as Mem- for Humanity” (HFH), which builds apart- ber of the Board of ments and houses for needy families Management for throughout the world. Sixty DFS employ- Human Resources ees in Singapore provided assistance on and Labor Rela- the Indonesian island of Batam in a fur- tions Director, effective as of the end of ther project involving HFH. For two days, the 2009 Annual Meeting. Porth is to suc- they helped build houses for needy fami- ceed Günther Fleig, who will be turning BERLIN – Social responsibility means a lies who had lost their homes in earth- sixty in February 2009 and whose period great deal more than merely donating quakes or floods. of office will expire on conclusion of the money. The “Day of Caring” gives the em - In Germany, two Daimler locations Annual Meeting on April 8, 2009. ployees of DFS the opportunity to take contributed a “Day of Caring.” At the end Porth will hold this position until April a day off work to participate in charitable of October, over 100 employees from 30, 2012. Until now, he has been in charge projects. Mercedes-Benz Bank Stuttgart helped put of Daimler’s Vans business unit. Günther In Mexico the “Day of Caring” was the children’s and youths’ house JimPazzo Fleig has been responsible for Human held for the first time this year. Around into tip-top shape. Already in May, 200 Resources on Daimler AG’s Board of Man- 250 employees from the various busi- employees of Daimler Financial Services agement since October 1, 1999; he is also ness units of Daimler joined forces to renovated the Naunyn Ritze youth and the company’s Labor Relations Director. renovate an elementary school on the cultural center in Berlin-Kreuzberg. “Günther Fleig has proved indispensable outskirts of Mexico City. In Romania, Around thirty Daimler locations carried in ensuring that Daimler remains in an too, Mercedes-Benz Financial Services out social projects in 2008 – many of excellent position in all aspects of human staged a “Day of Caring” for the first them on more than one occasion. resources policy,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Health management Cars.

“Corporate Health Award” +++ News +++ News +++ News +++ +++ Day care capacities increased. bestowed on Daimler Following the establishment of the new children’s day care center in Berlin- With this award as part of the “Move Europe” campaign, the BKK federal associa- Marienfelde, the Gaggenau and Mann - tion and the European Commission have acknowledged companies with exemplary heim plants now also have their own health management schemes. centers for employees’ children. The “sternchen” center in Gaggenau has STUTTGART – Daimler has received the Prof. Pott particularly praised the capacity for 24 children, and in Mann - “German Corporate Health Award” for “Kraftwerk Mobil” project. Using a mobile heim the figure is 32. A flexible alloca- the second time in succession. Some 600 platform, employees can strengthen their tion system even allows for capacity companies from all over Germany partici- back muscles directly at the workplace. duplication. The Mannheim “stern - pated in this competition; eleven received “Programs such as these help keep our chen” center is now the seventh of its a certificate entitled “Healthy employees workforce competitive. The good health of kind to start operation as part of the at healthy companies.” The expert panel a company’s employees maintains their Group’s day care campaign. As of fall paid particular attention to smoking pre- performance and thus directly contributes 2009, EvoBus employees at the Neu- vention, healthy nutrition, physical activity, to its success and prosperity,” said Gün- Ulm plant will have twelve day care po- and mental health. ther Fleig, member of the Board of Man- sitions at their disposal at the munici- “By concentrating all its health-relevant agement with responsibility for Human pal kindergarten. By 2010, Daimler will areas under the roof of ‘Health & Safety,’ Resources and Labor Relations Director. be establishing a total of 569 day care Daimler has laid the foundations for an all- The key emphasis topics in the field of positions for its employees’ children up encompassing approach to health,” said “Health & Safety” are occupational medi- to three years of age at all its 14 major Prof. Dr. Elisabeth Pott, director of the Fed- cine, promotion of health at the workplace, locations throughout Germany. +++ eral Center for Health Education (BZgA). occupational safety, and ergonomics.